Accounts payable software is important to the success of any business, but it’s especially important for startups still in growth mode. That’s because startups are doing just that – starting up. When you consider the various financial aspects of starting up, from managing cash flow to taxes to budgeting and forecasting, startups need all the help they can get – especially when considering their limited resources.

The good news is that accounts payable software can help streamline efficiencies for any startup – and software is only getting better thanks to the rise of automation.

Why Startups Need Accounts Payable Software

Accounts payable software is programming that helps automate the process of paying vendors for goods and services. Accounts payable are debts that a business owes and will pay in time – and without knowing these debts, you can’t properly monitor your cash flow and other key financials. Good accounts payable software won’t just help keep these debts straight, but it will also help process invoice payments.

Accounts payable software can also help facilitate that central system for managing vendor payments and tracking outstanding liabilities, keeping everything in one place for ease of use and analysis.

Key Features to Look for in Accounts Payable Software

There are several things that startups should look for in good accounts payable software to ensure they can get the most out of it and it will work hard to help their growing enterprise. Some of the key variables include:

• Scalability
• Flexibility
• Automation opportunities
• User-friendliness
• Security
• Integration capabilities
• Real-time reporting abilities

Another important consideration that shouldn’t be overlooked is user-friendly interfaces and the ability to customize workflows. These features allow accounts payable software to work harder for your startup and do just what you need it to do. Customization can also help offer better visibility and control over important financial processes.

Benefits of Accounts Payable Software

Using the right accounts payable software has several benefits for startups. Thanks to automated features, accounts payable software can streamline repetitive tasks and reduce data entry. This doesn’t just improve efficiency, but it can also improve accuracy by eliminating the need for manual invoice tracking.

Some other key benefits of accounts payable software for startups include:

• Improved transparency and better vendor relationships
• Improved cash flow thanks to the software’s ability to process payments faster
• Regulatory compliance, which is especially important for a young startup’s credibility and reputation
• Overall cost savings, notably when it comes to payment processing
• Fraud detection capabilities

Top 5 Accounts Payable Software for Startups

There are several accounts payable software options your startup can choose from – all of which offer their own set of unique benefits. Here’s a look at five of the best programs that are ideal for startups:

Ramp

Expense management, vendor management and procurement are just a few of the ways that Ramp’s accounts payable software can help startups streamline their finances. From real-time tracking ability to automated approvals, Ramp’s platform also includes intelligent insights to help startups optimize their spending.

Bill.com

Bill.com is a leading accounts payable solution for startups, highlighted by its robust automation features and user-friendly interface. It offers a centralized payment management feature that helps streamline payments and it can also easily integrate with other financial programs and expense management tools, like QuickBooks, to improve efficiency. It also features five standard roles, but offers users the ability to create custom roles.

Settle

Settle’s competitive advantage compared to other accounts payable programs includes its cash flow management prowess, something that’s essential for startups to properly manage. Settle integrates into other accounting platforms like QuickBooks and Netsuite to automatically sync data. Invoice financing options, flexible payment terms and an easy-to-use interface are also benefits of the Settle platform.

Airbase

Airbase is an all-in-one spend management platform that manages financials from a centralized location and streamlines all financial and procurement operations – from invoice capture through final payment. With the ability to grow and scale with your startup, other benefits of Airbase include a premium and easy-to-understand user experience, optimal fraud protection, AI and OCR to process payments and more.

Rho

Lastly, Rho is another leading accounts payable program for startups. With strong banking and financial management capabilities, Rho integrates with your startup’s bank to provide unified – and automated – financial management from a single platform. Via this platform, bills can be paid and expenses tracked seamlessly.

Choosing the Right Accounts Payable Software for Your Startup

What accounts payable software is right for your startup? It’s important to carry out due diligence when it comes to making your selection. However, there are various factors you should be on the lookout for to help determine the best fit. These include:

• Scalability: The goal of any startup is to evolve, grow and prosper – making scalability a key factor.
• Integration capability: The more your accounts payable software can integrate with other solutions, the more streamlined your operations will become.
• Ability to customize: Customizable workflows are ideal for ensuring the platform can work just how your startup needs it to.
• Security and compliance: Be sure whatever program you select has the right security features in place to keep your financial information safe and secure. Ensuring regulatory compliance is also important.
• Performance: Above all, any startup needs to utilize any accounts payable software to its benefit.

Best Practices for Implementing Accounts Payable Software

Implementing an accounts payable solution for your startup isn’t just as easy as pushing a button and expecting everything to fall into place. It’s crucial to establish an integration plan to ensure adoption is as seamless as possible. A good integration plan should include the likes of:

• Getting employee buy-in by effectively communicating the benefits of any new platform
• Proper training and onboarding for new employees
• Customizing workflows so the program can work best for your startup
• Setting KPIs and tracking them over time to determine where improvements can be made
• Continuously monitoring the software and its performance following adoption to identify ways to further enhance productivity

Common Challenges Accounts Payable Software Solves

A good accounts payable platform can solve many pain points in your startup. Some of the most common challenges it can help startups overcome include:

• Human error from manual entry
• Delayed payments
• Lack of visibility/financial transparency
• Difficulties with vendor onboarding
• Scaling and growth challenges
• Data security and fraud challenges

Elevating Your AP Process with the Right Software

From embracing automation software and reducing manual data entry errors to streamlining financial management and having a real-time benchmark on your cash flow, accounts payable processes can be significantly helped with the right AP software. When you consider that such software can also integrate with other accounting software and your startup’s financial institutions, it’s easy to see how much of a key player the right platform can be to the success of your business.

Optimize Your Accounts Payable Process with Graphite Financial

For more information on how the right accounts payable software solutions can take your accounting tasks to the next level and for help investing in the right platform to facilitate it, contact Graphite Financial today. From improved efficiency to flexibility and regulatory compliance, you can’t downplay the role that a robust accounts payable program can play in your startup’s establishment and future growth.

With deep expertise in helping startups grow and prosper, we pride ourselves on partnering to help them discover the right solutions, including accounts payable software and best practices. For more information on how we improve accounts payable efficiency and for a personal consultation and pricing options, contact Graphite today.

FAQs

How does accounts payable software streamline the invoice processing workflow?

Accounts payable software integrates with bank accounts and other financial management programs to create a centralized platform for the overall process. The right software can do more than just streamline workflows, but also enhance transparency, automate bill pay and invoicing, and more.

What are the key features to look for in accounts payable software?

Startups should look for key variables including scalability, flexibility, automation opportunities, user-friendliness, security, integration capabilities, real-time reporting abilities, user-friendly interfaces and the ability to customize workflows.

How does accounts payable software integrate with existing accounting systems?

Accounts payable software can integrate fully or as a bolt-on to an existing accounts payable system.

Can accounts payable software help in reducing errors and fraud?

Yes – good accounts payable software relies largely on automation, which helps with repetitive tasks and reduces the likelihood of human error. It can also help reduce fraud by better establishing checks and balances, providing access to real-time data and limiting access control.

What are the costs associated with implementing accounts payable software?

Costs vary based on the program that’s being implemented. Costs can also vary based on the number of invoices that are processed, the advanced features included in the platform, and more. Contact Graphite today for more information related to implementation costs.

How can accounts payable software support compliance with regulatory requirements?

Accounts payable software can help ensure data security, permit more transparent financial reporting, help with fraud detection and ensure compliance with reconciliation.